Unilever, the consumer goods group behind brands such as Marmite and Dove, has posted its best sales performance in more than a decade and raised its full-year outlook, ahead of the planned spin-off of its food business.
The company, which owns a portfolio of household names ranging from personal care products to ice cream, said the strong first-half results were driven by robust demand across its core categories. It now expects annual sales growth at the top end of its previous guidance range, reflecting confidence in the momentum of its underlying business.
The improved sales performance comes as Unilever prepares to separate its food division into a standalone entity. The spin-off, which has been anticipated by investors and analysts, is intended to sharpen the group's focus on higher-margin personal care, home care, and premium beauty brands while allowing the food business — which includes spreads, dressings, and savoury products — to operate with its own strategic priorities.
The food unit has long been a core part of Unilever's portfolio, but its slower growth relative to categories such as beauty and wellbeing has prompted the board to pursue a separation. The move is expected to unlock value for shareholders and give each business greater flexibility in capital allocation and innovation.
Unilever's leadership described the first-half performance as a testament to the strength of its brands and the effectiveness of its operational strategy. The company has been undergoing a transformation programme aimed at simplifying its structure, reducing costs, and focusing on faster-growing segments.
Analysts have welcomed the sales update as a positive signal ahead of the food spin-off, noting that a strong financial position will help both entities navigate the separation smoothly. The transaction, which is subject to regulatory and shareholder approvals, is expected to be completed within the next year.
The results also reflect broader trends in the consumer goods sector, where companies are increasingly seeking to streamline their portfolios and concentrate on categories with higher growth potential. Unilever's decision to hive off its food business follows similar moves by other multinationals to split their operations into more focused units.
With the improved outlook and the spin-off plan on track, Unilever appears well positioned to deliver sustained performance in the coming quarters. The group will provide further details on the separation timeline and financial targets in its next investor update.
